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What is it?
Northstar Trade Finance Inc. is an export company that provides medium term financing to qualified foreign buyers of eligible Canadian goods and services. Financing is available for export sales of CAD 100,000 to CAD 5 million with repayment terms of one to five years.
Who should use it?
Any small or medium sized Canadian exporter can use Northstar provided they meet the requirements for export performance combined with a creditworthy foreign buyer insurable by Export Development Canada (EDC).
How does it work?
- A complete application must be submitted to Northstar and it will be processed within 7 business days
- Once approved, Northstar will then issue a letter of offer, which may be presented by you to your foreign buyer
- Upon evidence of receipt and acceptance of the goods or services by the buyer, and a properly completed agreement signed by the buyer and exporter, Northstar will pay funds directly to the exporter, and assumes risk of the foreign buyer
- Northstar will then collect the loan directly from the buyer
How can I contact
Northstar?
Contact Northstar via:
- Phone or fax
- Provincial Trade Agencies
- The International Department of Foreign Affairs and International Trade
- your local chartered bank
- www.northstar.ca.
Benefits
- Funds are paid directly to the exporter, and Northstar assumes the buyer’s risk
- Because you receive payment immediately, you avoid risks associated with maintaining long-term account receivables
Costs
- The Canadian seller is required to pay a non-refundable application fee of CAD 300 plus GST
- Other costs flow to the buyer off-shore
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